The General Ledger Account for Accounts Receivable Shows a Debit

question 19

Essay

The general ledger account for Accounts Receivable shows a debit balance of $40,000. The Allowance for Uncollectible Accounts has a credit balance of $2,000. Net sales for the year were $250,000. In the past, 3 percent of net sales have proved uncollectible. An aging of accounts receivable accounts results in an estimate of $9,000 of uncollectible accounts receivable. Calculate (1) Uncollectible Accounts Expense and (2) the ending balance of the Allowance for Uncollectible Accounts using (a) the percentage of net sales method and (b) the accounts receivable aging method.

---

Definitions:

Composite Volcanoes

Volcanoes characterized by explosive eruptions and composed of alternating layers of lava flows and pyroclastic materials.

Pyroclastic Flows

Fast-moving currents of hot gas and volcanic materials that flow down the slopes of a volcano during an explosive eruption.

Caldera Collapse

The sinking of a volcano's summit, forming a large, bowl-shaped depression, typically following the emptying of the magma chamber in a major eruption.

Dome Formation

The upward bulging of the earth's surface to form a dome, often due to magma pushing upwards.